Sean Hunter, the former director of aviation at Louis Armstrong International Airport, and his wife, Shauna, have backed out of an agreement to plead guilty to a federal charge involving their alleged attempt to profit illegally from a phony insurance claim on a BMW, and a subsequent coverup.

Sean Hunter

The couple was charged in a bill of information rather than by grand jury indictment, nearly always an indication that a plea deal has been reached. The Hunters had been due in court today to enter a plea on the charge of conspiracy to commit mail fraud and make false statements.

On Wednesday, according to the federal docket, they were to appear again for a "change of plea hearing," where they would plead guilty before a federal judge.

But federal prosecutors filed paperwork late last week calling off this week's court dates, saying that the government's deal with the Hunters had fallen apart for unspecified reasons.

"At the time of the filing of the bill of information, the defendants and the government had reached an agreement in principle for both defendants to plead guilty to the charges contained in the bill of information," a document filed Thursday says. "At present, the defendants are not abiding by the terms of their previously agreed-to plea agreement. Therefore, the government needs additional time to present this matter to federal grand juries and seek an indictment (or indictments) against the defendants."

It's unclear what caused the deal to collapse. The Hunters' attorney, Arthur "Buddy" Lemann, did not immediately return a call seeking comment.

Kathy English, a spokeswoman for U.S. Attorney Jim Letten, said the office could not comment on the case.

According to the bill of information, filed Aug. 27, Shauna Hunter filed a false claim on her BMW 525i shortly after Hurricane Katrina, saying the car had been ruined by floodwaters. The couple were not yet married at the time.

The car in fact was not damaged in the flood, according to prosecutors, and the Hunters continued to drive it, although she received a $3,443 check for the car from her insurer. The insurer, AAA, also paid off the car's $55,000 note.

The couple married in June 2006, around the time Sean Hunter rose to the top position at the airport. He resigned in September 2009 when word of the federal investigation got out.

Authorities began investigating after the car was spotted twice running red lights in New Orleans. Because AAA by then technically owned the car, it also received notices of the traffic violations. The Hunters attempted to hide the car in an airport parking garage, according to the bill of information, but it was discovered there by a New Orleans police detective.

While federal authorities said the false insurance claim was filed by Shauna Hunter alone, both Hunters participated in a conspiracy to cover the crime up, according to the bill of information.